Latest / The Nonprofit Podcast / Ep 159| Stable nonprofit funding: The smart approach in 2025

Transcript

Ep 159| Stable nonprofit funding: The smart approach in 2025 · The Nonprofit Podcast

• 0:04
  SPEAKER_03: The Nonprofit Podcast, powered by DonorBucks.
• 0:09
  SPEAKER_03: Let's be honest.
• 0:10
  SPEAKER_03: 2025 has been a wild ride already.
• 0:15
  SPEAKER_03: Between changing funding landscapes, shifting priorities, and a whole lot of unanswered questions, it's been a challenge to know where to focus.
• 0:23
  SPEAKER_03: That's why today we're pulling together a few standout insights from recent episodes, practical strategies that have helped nonprofit leaders stay grounded, stay creative, and keep moving forward.
• 0:35
  SPEAKER_03: Welcome to the Nonprofit Podcast.
• 0:37
  SPEAKER_03: I'm Jenna, Education and Community Engagement Manager here at Dannerbox.
• 0:42
  SPEAKER_03: We are here each week with practical actions you can use today to increase donations and take your nonprofit to the next level tomorrow.
• 0:50
  SPEAKER_03: But today's episode is a little different.
• 0:54
  SPEAKER_03: Instead of a deep dive interview, we're bringing you a highlight reel, three insights from conversations we had in Q1 that really struck a chord with our community.
• 1:06
  SPEAKER_03: If the last few months have left you questioning how to plan, how to pivot, or how to stay steady, you are far from alone.
• 1:15
  SPEAKER_03: This short roundup is designed to help you reflect on what's worked, review where you are, and renew your strategy for the rest of the year with calm, clarity, and a little less chaos.
• 1:29
  SPEAKER_03: As we reflect on how to bring stability into a chaotic start to the year, it's worth asking are we making it easy for donors to stay connected consistently?
• 1:42
  SPEAKER_03: In our most popular episode of The Quarter, Donor Boxes, Lindsay Bauer reminded us that one of the most powerful ways to build sustainability into your fundraising strategy is to focus on recurring giving.
• 1:56
  SPEAKER_03: Here's how that simple shift, done right, can unlock sustainable growth in 2025.
• 2:04
  SPEAKER_02: One thing I'm noticing is that more nonprofits are doubling down on recurring giving.
• 2:09
  SPEAKER_02: When you focus on recurring donations, you're building a loyal donor base.
• 2:13
  SPEAKER_02: Recurring donors are so valuable.
• 2:16
  SPEAKER_02: They give up to 42% more per year than one-time donors, and their retention rate is 78% compared to the industry standard of around 30 to 35%.
• 2:26
  SPEAKER_02: So nonprofits that focus on making recurring giving as easy and impactful as possible are in a great position to grow in 2025.
• 2:34
  SPEAKER_02: Another thing I'm seeing too is nonprofits making it super easy for people to sign up for recurring donations.
• 2:41
  SPEAKER_02: And the easier you make it, the more likely they are to commit.
• 2:44
  SPEAKER_02: A simple, clear donation process really goes a long way.
• 2:48
  SPEAKER_02: And the easier you make it for donors to give, the more likely they are to keep giving.
• 2:53
  SPEAKER_02: I think we'll see nonprofits using tools like DonorBox's recurring donation feature more and more to get the most out of individual giving.
• 3:01
  SPEAKER_02: These tools help automate the process and make it easier to keep those donors engaged long term.
• 3:07
  SPEAKER_02: It's all about making the process seamless while also showing donors that their support really matters.
• 3:12
  SPEAKER_03: In 2025, it's more important than ever, I think, for nonprofits to leverage data to make smarter decisions.
• 3:20
  SPEAKER_03: You mentioned that a study by McKinse found that companies with a data-driven approach outperformed competitors by up to 20%.
• 3:29
  SPEAKER_03: Do you have some tips or key metrics that they should be tracking?
• 3:32
  SPEAKER_02: First off, if you're not tracking your ROI or return on investment per donor or the conversion rate for your latest campaign, really easy to access stats like that.
• 3:43
  SPEAKER_02: Now is the time to start.
• 3:45
  SPEAKER_02: And it's not just about the numbers, data helps you connect with your supporters in more meaningful ways.
• 3:51
  SPEAKER_02: So one of the first steps I recommend is upgrading your tools.
• 3:55
  SPEAKER_02: You need to be able to track donor behavior so you understand how people are interacting with your donation form and with your landing pages.
• 4:02
  SPEAKER_02: So I suggest using tools like Google Analytics and MetaPixel to track those kinds of behaviors.
• 4:07
  SPEAKER_02: And those are really easy to use with your donor box donation form too.
• 4:11
  SPEAKER_02: When it comes to other kinds of donor information like giving behavior, investing in a CRM is crucial.
• 4:17
  SPEAKER_02: You can track donor information, donations, and even let AI tools like DonorBox's JAI sort through it all and create visualized reports to make decision making easier.
• 4:29
  SPEAKER_03: This isn't just about recurring giving.
• 4:35
  SPEAKER_03: When you use your data to spotlight the donors most likely to stay with you, you're not just reacting to challenges, you're building long-term sustainability.
• 4:45
  SPEAKER_03: But what do you do when a funding contract goes into limbo?
• 4:49
  SPEAKER_03: How do you keep serving without losing sleep?
• 4:52
  SPEAKER_03: Britt and I tackled building resilience through tapping into sharing resources, building real support systems, and working smarter together so no one has to go it alone.
• 5:06
  SPEAKER_01: I've worked with many small to medium nonprofits, and I've seen it where nonprofits are relying heavily on federal contracts.
• 5:14
  SPEAKER_01: And it's time that we talk about these things in tangible ways to protect our missions from what I see as future shocks.
• 5:22
  SPEAKER_03: One that stands out is forming collaborative alliances.
• 5:26
  SPEAKER_03: So that's deeper partnerships with nonprofits and sector-friendly businesses that can share resources, reduce costs, and create backup plans.
• 5:34
  SPEAKER_03: What do you think about that?
• 5:36
  SPEAKER_01: So a lot of organizations partner at a very superficial level, right?
• 5:40
  SPEAKER_01: It might be sharing a co-branded event, a joint campaign, or MOU for grant applications.
• 5:47
  SPEAKER_01: But what happens?
• 5:49
  SPEAKER_01: The buck just stops there, right?
• 5:50
  SPEAKER_01: And so going deeper can really bolster resilience.
• 5:54
  SPEAKER_01: Why not think about shared offices or co-working spaces as it lowers your rent and it just really brings out the day-to-day collaboration?
• 6:03
  SPEAKER_01: Or what about resource sharing agreements?
• 6:07
  SPEAKER_01: Think about forming what's called a resource swap.
• 6:10
  SPEAKER_01: If your nonprofit has strong volunteer management, but you lack IT support, well, heck, why not swap expertise with an organization that already has an IT specialist, but needs volunteer outreach help right now?
• 6:25
  SPEAKER_01: Resource sharing can really lead to successful outcomes.
• 6:37
  SPEAKER_01: I love this idea.
• 6:38
  SPEAKER_01: What it entails is pulling in donations into one shared fund and even create a cross-organizational campaign.
• 6:46
  SPEAKER_01: One thing that comes to mind is there is a nonprofit called Democracy Frontlines Fund.
• 6:51
  SPEAKER_01: And they did exactly this where they pulled resources to support Black-led organizations.
• 6:56
  SPEAKER_01: They raised$39 million in their first phase.
• 7:00
  SPEAKER_01: And come 2025, their their goal is to$42 million more.
• 7:05
  SPEAKER_01: So again, it's collaborative, it's community-led, it's really working around macro level challenges, and it's a way to ensure that resources can be deployed quickly.
• 7:15
  SPEAKER_01: So a practical step for your organization could be: if your mission is around food insecurity, why not look for a local coalition of nonprofits who might be open to creating a shared giving campaign?
• 7:29
  SPEAKER_01: Each organization promotes it, each organization lends its own voice, your donors feed the same pot.
• 7:36
  SPEAKER_01: And that way you can collectively decide where the funds are distributed.
• 7:41
  SPEAKER_01: This is such a great way to preserve your critical services when crises happen.
• 7:47
  SPEAKER_03: And this is where technology can really help too, right?
• 7:51
  SPEAKER_03: Like shared crowdfunding platforms or CRMs that let you track donations from multiple stakeholders in real time.
• 7:58
  SPEAKER_01: Definitely.
• 7:59
  SPEAKER_01: Platforms like DonorBox can handle multi-chapter or multi-or campaigns.
• 8:05
  SPEAKER_01: Some even have the option to let donors choose which project they support, which fun within a shared campaign.
• 8:12
  SPEAKER_01: And the point here is it's all about forming a united front because you're stronger together than alone.
• 8:20
  SPEAKER_01: The goal here is to build resilience in a system that we know that's proven to be anything but stable.
• 8:27
  SPEAKER_03: The last few months may have felt like a scramble, constant campaigns, more ass, less return.
• 8:34
  SPEAKER_03: So Britt and I sat down to talk about how the right tools and resources can make all the difference.
• 8:41
  SPEAKER_03: Because when giving is easy, personal, and intuitive, more people follow through and more of them stick around.
• 8:48
  SPEAKER_03: Treating donors like long-term partners rather than one-time givers can be one of the most stabilizing changes an organization makes this year.
• 8:59
  SPEAKER_01: So, with all of the hats fundraisers wear these days, what are some of the key features that have helped nonprofits raise more money while easing the workload?
• 9:11
  SPEAKER_03: So, no surprise here at all, but multi-step donation forms are still number one in my book, and they're still number one for our nonprofit users, too.
• 9:19
  SPEAKER_03: Donor abandonment is a real challenge for many nonprofits, and it often comes down to the user experience.
• 9:27
  SPEAKER_03: So multi-step forms break down the donation process into smaller, more manageable steps, making the entire experience feel smoother and more personalized.
• 9:39
  SPEAKER_03: This in turn helps reduce those abandonment rates and increase your conversion rates.
• 9:44
  SPEAKER_03: And they also create a sense of trust and connection, especially if you're able to align the forum with your nonprofit's brand, like your logo, your colors and your imagery, and make the donation process feel more in line with your mission and your values in your brand.
• 10:02
  SPEAKER_03: This has been shown to encourage larger donations, right?
• 10:06
  SPEAKER_03: One of the main reasons donors drop off is because of friction in the payment process, right?
• 10:11
  SPEAKER_03: And that's where ultra swift pay comes in.
• 10:15
  SPEAKER_03: It allows donors to complete their donation in just a few seconds.
• 10:19
  SPEAKER_03: Fewer clicks and faster payments means that there's a higher likelihood that donors will follow through.
• 10:25
  SPEAKER_03: Offering a variety of payment methods and currencies just removes the barrier to giving and opens up opportunities for broader support.
• 10:33
  SPEAKER_03: So this is a huge, huge revenue driver for organizations.
• 10:37
  SPEAKER_01: So, Jenna, let's talk about the recurring donation upsell.
• 10:42
  SPEAKER_01: Creating a reliable, consistent flow of recurring donations is a huge challenge for some of us.
• 10:48
  SPEAKER_01: It takes time to upgrade and convert to recurring donors.
• 10:52
  SPEAKER_03: I know a lot of nonprofits hesitate to ask for that commitment, especially early on with a donor.
• 10:59
  SPEAKER_03: But once you do ask, it creates stability in your fundraising efforts and it can make all the difference, especially times like now.
• 11:05
  SPEAKER_03: We really need that dependable, sustainable revenue.
• 11:09
  SPEAKER_03: Donor Box makes this process easier with the recurring donation upsell feature.
• 11:14
  SPEAKER_03: Before a donor makes a one-time donation on your donation form, they are prompted to upgrade to a recurring monthly donation, which is at 50% of their original gift.
• 11:26
  SPEAKER_03: Now, I know this may sound like a small ask, but over time it really adds up.
• 11:32
  SPEAKER_03: For example, if a donor gives$50, they might be prompted to convert that into a 25-monthly gift instead, right?
• 11:42
  SPEAKER_03: So over a course of a year, that's$300.
• 11:46
  SPEAKER_03: That is six times their initial planned donation.
• 11:50
  SPEAKER_03: So the beauty of this is that it's a seamless process for the donor and it's a very non-intrusive prompt.
• 11:57
  SPEAKER_03: And it makes this upgrade feel easy and helpful, not pushy, right?
• 12:02
  SPEAKER_03: And the results are so clear.
• 12:04
  SPEAKER_03: Nonprofits using this kind of strategy have seen as much as a 64% increase in monthly donations just by asking donors to switch from one-time gifts to recurring support at intervals.
• 12:17
  SPEAKER_03: Amplify the donor experience.
• 12:19
  SPEAKER_03: Look for ways to make the process smoother.
• 12:21
  SPEAKER_03: Look for ways to guide your donors to give more and give more often.
• 12:25
  SPEAKER_03: And these small changes can really make a big difference.
• 12:39
  SPEAKER_03: Treating donors like long-term partners rather than just one-time givers can be one of the most stabilizing changes an organization makes this year.
• 12:48
  SPEAKER_03: And with the right strategy and these three smart, field-tested ways to simplify giving and strengthen meaningful donor engagement, you'll stabilize your fundraising model for whatever the rest of 2025 has in store.
• 13:02
  SPEAKER_03: As we pause this weekend to take a quiet breath, we hope you find space to reset and reimagine.
• 13:10
  SPEAKER_03: Thank you for joining us in the Nonprofit Podcast.
• 13:13
  SPEAKER_03: I hope you've left with the confidence to take a small step today that will make a big difference tomorrow.
• 13:19
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• 13:29
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• 13:31
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• 13:34
  SPEAKER_03: Until next time, stay inspired.
• 13:37
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• 13:42
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• 13:44
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• 13:48
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• 13:51
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• 13:52
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